Count on a failing business backed into a corner to rely on “changing the rules of the game” to sustain itself, to carry it above water (barely) for another few periods. Just buy some time until something miraculous can be arranged (or more time can be purchased from the time vendor).
In this case, the “rule change” developed by some “genius” is the regulatory raising of the cost of operation of an entire industry’s flagship products so as to make one firm’s “novel alternatives” profitable. The “novel alternatives” are small cars and fuel-efficient models. The company is Ford. The “genius” is Bill Ford.
Higher taxes to push the price of petrol up by more than 70 per cent are needed to change Americans’ car-buying habits and usher in a new generation of fuel-efficient vehicles, according to Bill Ford, chairman of Ford Motor.
[...]
His comments mark a clear break with the rest of the US auto industry in the depths of a financial crisis that has sapped Detroit’s ability to fund a new generation of electric vehicles, hybrids and other more fuel-efficient models.
And what about the billions upon billions in extra costs heaved onto the back of everyone who drives so that Ford can sell some electric cars no one wants to buy otherwise?
Strong price incentives were needed for a lasting change in consumer demand, Mr Ford said: “It’s got to be a pocket book issue for the customer to change their behaviour.
That’s just fantastic, Bill.
Ford chairman calls for petrol tax to drive change [The Financial Times]
People like Thomas Friedman have been calling for a gas tax for a long time. This is hardly a new idea, idiot.
i’m a little disappointed in you, ep. this is the pure economics approach right out of the textbooks, which i thought you would stand behind.
I feel like I am taking crazy pills.
Memo to corporations…if you need subsidies to make a profit, you are in the wrong business.
I wonder how Alan Mullaly feels about Ford’s comments.
Should be an easy sell the the ass-clowns in congress and the Chief A-C in the Whitehouse.
How do you go long a tax increase?
This country has so many negative externalities associated with its oil dependance it is staggering. I see no problem with using a tax to properly align the price of oil with its costs.
@7 what else do you not like. Maybe we can tax that regardless of if it makes economic sense. This whole idea of using taxes and subsidies as punishments and rewards are why things are so screwed up in the first place.
-@7
“This country has so many negative externalities associated with its oil dependance it is staggering”
Libtard speak for ‘I have no clue what markets are, where oil is trading, why it spiked, and I hope no one remembers my ‘the sky is falling’ bs i dished out at $140/bbl now that we are back at $50/bbl’
Again – libtards, beyond raising taxes on everything under the sun, do you have any otehr solutions?
Trying to scam people into solving two non-existent problems – ‘global warming’, and ‘end of oil’.
fruck-off @holes.
@ 9
@ 9
Einstein @9,
If you spent more time reading a book, or even a blog, you’d know better than to position yourself as the anti-liberal in this argument.
Here’s a helpful link.
http://gregmankiw.blogspot.com/2006/10/pigou-club-manifesto.html
As an aside, since you clearly have it all figured out on the matter of ‘where oil is trading and why it spiked’ perhaps you’d condescend to share the pearls of wisdom that you’ve acquired from peeking into your super-awesome-magic crystal ball.
-@12
I know mankiw, and it still does not change the fact that the libtards would love raising taxes to “fix” this non-existant problem (and so sign on to the misguided ‘rightwing’ nut). Also – mankiw “assumes” certain bs to be true, to come up with his argument (ex. the enviro-nonsense). So please.
Also – re oil spike and down – hint – chinese mismanagement of diesel purchases in the open market. check distallate spread prices from those days.
to 13 @ 12 – Zing!
We need to raise taxes on potato chips, ice cream, red meat, candy bars and any thing making people enjoy eating. Big Mac going to $10.00, medium french fries now $7.50 Coke with that now $5.50.
We need punish people into changing their eating habbits and to pay for health care.
Fu&k off Ford!
We need to raise taxes on potato chips, ice cream, red meat, candy bars and any thing people enjoy eating. Big Mac going to $10.00, medium french fries now $7.50 Coke with that now $5.50.
I wonder how Ronald will feel about this? I don’t think Ronald will have many customers even if the menue goes health food fucking crazy. Dumb ass at Ford will suffer the same fate.
We need punish people into changing their eating habbits and to pay for health care.
Fu&k off Ford!
Colour me retarded (very possible), but what’s the point of a Pigovian tax if there isn’t an explicit commitment to use proceeds to fund outcomes with less negative (or more positive) outcomes, in this example, high-speed rail?
Um, the best way to end “dependence” on foreign oil is to increase production of domestic oils (i.e., the oceans of oil under Alaska and off the continental shelves. It’s not to up the price of fuels, produce ridiculous battery powered super golf carts at $40k per. Obama sucks.
High speed rail, green energy, we’ll be just like Spain! You know, Spain, that country in Europe where unemployment just hit 17 1/2 percent.
My understanding is that the Spanish speakers are being hit hard there. Very hard.
15-16 here…thought I stopped first post.
Does Mr. Ford understand that this is not Russia? That people here have choices?….Wait!….Sorry….Stupid me.
That was prior to the USA having BO!
Come to the UK, you guys would be terrified of what we pay for oil (its not GAS!). Thats why we invented the mini and not the hummer.
it’s all about CAFE. Read up on it EP.
It is the dummest idea ever created.